HONG KONG, Oct 29 (Bernama-BUSINESS WIRE) -- A.M. Best has a stable outlook on Japan’s non-life insurance sector, despite the elevated risks of catastrophe losses and modest economic expansion.
A new Best’s Market Segment Report, titled, “Market Segment Outlook: Japan Non-Life,” states that private companies operating in Japan’s non-life insurance sector hold solid risk-adjusted capital positions and profitable underwriting results despite economic- and weather-related pressures. In addition, the market has demonstrated stable pricing conditions. However, the industry has been facing medium- to long-term challenges to grow its premium base, due to modest economic growth, falling accident rates resulting from advanced driver-assistance systems and the gradual shift in population demographics. Despite these ongoing and escalating challenges, most private non-life insurers in Japan have continued to grow premium revenue, generate underwriting profits and maintain solid risk-adjusted capital positions that are supportive of their risk profiles.
Japan’s overall market performance has remained quite profitable. Based on the results disclosed by the three largest groups, which collectively account for more than 85% of net premiums within the domestic insurance market, the weighted average combined ratios for the private insurance segment generally remained under 95% over the most-recent five-year period.
In fiscal-year 2017 (ending March 31, 2018), the industry’s underwriting results remained strong, despite some deterioration due to several natural disasters, including two typhoons and one heavy snow event. The resulting increase in the industry’s combined ratio was approximately three percentage points. Excluding losses caused by natural disasters, the industry’s combined ratio remained stable at approximately 90%, reflecting the strong underlying profits of the industry, supported by continued premium growth, tight cost controls and adequate pricing for most businesses.
A.M. Best believes two main factors will continue to foster stable pricing conditions among the non-life insurers in Japan: the presence of an effective reference rate system and an oligopolistic industry structure. Additionally, in spite of the performance pressures arising from recent weather-related events, A.M. Best expects the industry to maintain very strong risk-adjusted capital positions.
To access the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=279470.
A.M. Best is a global rating agency and information provider with a unique focus on the insurance industry. Visit www.ambest.com for more information.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20181026005371/en/
Contact
A.M. Best
Jason Shum, +852 2827 3424
Associate Director, Analytics
jason.shum@ambest.com
or
Christopher Sharkey, +1 908 439 2200, ext. 5159
Manager, Public Relations
christopher.sharkey@ambest.com
or
Jim Peavy, +1 908 439 2200, ext. 5644
Director, Public Relations
james.peavy@ambest.com
Source : A.M. Best
--BERNAMA
No comments:
Post a Comment